2022 Financial Markets Outlook
The year has been an interesting one as have witnessed record-breaking highs and some unexpected lows. In this piece, we take a look at 4 assets and explore how we see them performing in the months to come.
Let’s dive in.
The Dow has been resilient in how it has managed to remain stable all things considered seeing as it is holding support at the 50% marker of the January sell-off. The Dow rallied 100 points on Tuesday. This is coming on the heels of volatile stock market action on Monday.
The Dow Jones presents less clarity than the S&P 500 and Nasdaq 100, but obviously, if we see a broader move lower in risk then the Dow will go with it. There is a lot of support below from 34k down to the Jan low at 33150
Nasdaq narrowly avoided its worst-ever start to the year closing out the month with a 9% loss as the S&P 500 recorded its weakest January performance since 2009. The Nasdaq 100 is starting to etch out a head-and-shoulders pattern like the S&P 500. This comes after breaking the bull channel dating to September 2020. It could be that price action is capped on the upside by the 200-day moving average of just over 15k, but if not it isn’t viewed that the NDX will be able to climb over the underside parallel of the bull channel if the market is to eventually head materially lower.
So far in 2022, Brent crude has climbed around 20% and just last month, it touched $94/barrel, its highest since October 2014. WTI also hit $93.17, its highest since September 2014. Both rises are driven by falling oil stockpiles in the US and rising political tensions with Russia.
Crude oil prices are trading back under the psychologically imposing 90 level as prices tread lower in early APAC trade, extending the overnight drop. A break below trendline support from the late December swing low may induce additional weakness, with the 23.6% Fibonacci retracement eyed as possible support. Alternatively, prices may quickly return above the 90 handle if trendline support holds.
Tesla CEO; Elon Musk expects Tesla sales will comfortably grow above 50% in 2022 compared with last year despite supply chain problems thanks to their new factories starting up and current plants boosting output. This remains to be seen even though Tesla’s (TSLA) shares closed higher on Friday after an unusually volatile week in which the electric vehicle company posted fourth-quarter earnings that, while better than estimates, gave at least a few Wall Street analysts grounds for skepticism over its ambitious 2022 goals.
There you have it. Which of these assets do you have your eyes on? Tell us.